2026 tax year · Mississippi
Services and task work taxes in Mississippi
TaskRabbit, Rover, Upwork and the rest report your gross and withhold nothing. The gap between that and what you are taxed on is mileage, in Mississippi that gap is worth $2,283 in tax.
Take a driver who grossed $34,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the services and task work page $9,030 comes off and $24,970 is left as taxable profit. That profit is what Mississippi and the IRS charge against.
What that leaves you owing in Mississippi
Mississippi taxes income at a flat 4% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $3,528 |
| Federal income tax | $568 |
| Mississippi income tax | $928 |
| Total tax | $5,025 |
| Effective rate on gross | 14.8% |
Earning more in Mississippi
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Mississippi tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $11,000 | $1,485 | $9,515 | $354 | $1,698 | 15.4% |
| Steady side income | $34,000 | $4,455 | $29,545 | $1,098 | $6,182 | 18.2% |
| Full-time | $55,000 | $7,425 | $47,575 | $1,769 | $10,942 | 19.9% |
Mississippi specifics that change the number
On the 2026 rate itself: phasing down toward 0% if revenue triggers met.
Working across a Mississippi line
Services income is sourced to where the work was physically done. A job over the line can create a filing obligation in that state even for a single afternoon, and reciprocity agreements do not help, they cover wages paid by an employer, not self-employment income.
On $24,970 of profit, what the states around Mississippi would charge:
| State | Its tax | vs Mississippi |
|---|---|---|
| Tennessee | No income tax | −$999 |
| Louisiana | $374 | −$624 |
| Arkansas | $896 | −$102 |
| Alabama | $1,209 | +$210 |
- Tennessee has no income tax at all, so the same work done there costs $999 less in state tax than it does in Mississippi.
- Louisiana would take $624 less, $374 against Mississippi's $999.
- Arkansas would take $102 less, $896 against Mississippi's $999.
- Alabama would take $210 more, $1,209 against Mississippi's $999.
Services and task work tax questions in Mississippi
How much should a Mississippi contractor set aside?
About 14.8% of gross on the $34,000 example, $5,025 across self-employment tax, federal income tax and $928 to Mississippi. In practice that means moving about $148 of every $1,000 payout into a separate account the day it lands, and sending roughly $1,256 to the IRS each quarter, no platform withholds any of this for you. Set aside from each payout rather than finding it in April.
Does the $34,000 on my 1099-NEC match what Mississippi taxes?
No. Mississippi taxes profit, not gross. After $9,030 of deductions the taxable figure is $24,970, so the Mississippi bill is $928 rather than what gross alone would suggest. The form reports what the platform paid out, it knows nothing about your costs, and no one subtracts them for you. On this example 27% of the gross never becomes taxable income, but only for the contractor who kept the records to prove it.